Mexico replaced China as America's top trade buddy — and it shows how the global economy is rapidly transforming

[NAVDEEP DHALIWAL]

Except Mexico imports more that half its intermediate goods from the US not China.
So your brilliant theory isn’t as brilliant as you think it is.Also relabeling Chinese goods as Made in Mexico isn’t going to make it exempt from import duties.
Since relabeling isn’t considered ‘Substantial transformation’ the country of origin will remain China although the item was exported to the US from Mexico.

Abraham Lincoln “Better to remain silent and be thought a fool than to speak and to remove all doubt“

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How to qualify for tariff-free Imports under the USMCA

To be eligible for the USMCA and enjoy tariff-free or reduced tariffs, some criteria must be met. Businesses are required to seek clearance from the U.S. Customs and Border Protection (CBP) and provide documentation of the commodity, including the Certification of Origin.

The Certification of Origin can be in any format and may be completed by either the importer, exporter, or producer. This will consist of details of the importer, exporter, producer(s), Harmonized System (HS) classification of the goods as well as the origin criteria.

U.S. – Mexico – Canada Agreement (USMCA)

Securing America's Borders

www.cbp.gov

As I said if Mexico is pulling it off I'm happy with it.
And the rules u quoted let's just say it's nothing new and can be easily bypassed.
Has been bypassed since ages all over the world.

Prime example is banning of Russian oil, now just imagine who is buying Russian oil ?

I think ur not a trader, my friends are into trading and bypassing these regulations is not a big deal.

But you're in Mexico, and if you have your self seen doubling or an increase of factories near you. I 100% believe you.

I have nothing to gain by arguing. I just wanted to share something that is very common in international trade.

Good day.

 

[beijingwalker]

Mexico buys Chinese products and relabels them and sell them to US, US is not dumb either, buying Chinese products and selling them to Mexico to reciprocate.

• In H1 2023, although Mexico became the US' top general trade partner, China remained the leading textile supplier.
• US exported 28.05 per cent of textile and apparel to Mexico, with a total export value of $3.459 billion.
• US textile and apparel exports were $22.652 billion and $24.866 billion in 2021 and 2022, while imports dropped 22.69 per cent in H1 2023.

 

[dbc]

Prime example is banning of Russian oil, now just imagine who is buying Russian oil ?

Well you don’t know the difference between oil and distillates.The ban on Russian oil doesn’t extend to distillates.

I think ur not a trader, my friends are into trading and bypassing these regulations is not a big deal.

lol

 

[retaxis]

Thats what BRICS + Belt and Road is for, China trade club for emerging markets as China is diversifying from America/West also.

Belt and Road is not meant to make direct profits just like hospitals/military etc don't make profits. Instead its goal is to improve infrastructure and trade volume for the next 100-200years

 

[jhungary]

Mexico buys Chinese products and relabels them and sell them to US, US is not dumb either, buying Chinese products and selling them to Mexico to reciprocate.

Textile and Apparel is different. Textile/Fabric is raw material for Apparel, while Apparel is the product.

Mexico is not buying Textile from China and relabel them, they are buying Chinese Textile and making clothes with them, making them. I can buy a yard of cotton fabric for $3, but I can make a dress worth $400 using said $3 piece of fabric.

It's like China making steel using Australian High Grade Iron ore, that does not mean the Chinese Steel are just "relabelled" Australian products.....

 

[NAVDEEP DHALIWAL]

Well you don’t know the difference between oil and distillates.The ban on Russian oil doesn’t extend to distillates.


lol

Exactly there's always a loop hole.

For example u can import all the parts from China but build the chasis/ outer hull in maxico and slap made in Mexico label on it.
Heck u can even import kits of the outer hull from 3rd party and than buy it from that party labelling it made in mexico. And assembling it in your plant.
there are too many ways to bypass santions.
But this is my last post. Your right have a good day.

 

[Hamartia Antidote]

Exactly there's always a loop hole.

For example u can import all the parts from China but build the chasis/ outer hull in maxico and slap made in Mexico label on it.
Heck u can even import kits of the outer hull from 3rd party and than buy it from that party labelling it made in mexico. And assembling it in your plant.
there are too many ways to bypass santions.
But this is my last post. Your right have a good day.

Which product are you trying to talk about?

The only switch is if it is something simple like no-name paintbrushes where they switch the mark from "Made in China" to "Made in Mexico".

But in terms of something bigger with a brand such as appliances it isn't going to happen because most mainstream appliances are not Chinese or Mexican brands.

 

[StraightEdge]

There were also other articles published on the same topic, but looks like not reported.

China Remains Embedded in US Supply Chains: Jackson Hole Paper

China remains embedded in US supply chains even as American firms have taken steps to reduce direct imports from the Asian country, according to a paper presented at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference Saturday.

www.bloomberg.com

Also, similar export declines were reported for Korea, Taiwan etc., US imports of consumer goods had the biggest YoY drop in the past 50 years.

 

[dbc]

Exactly there's always a loop hole.

For example u can import all the parts from China but build the chasis/ outer hull in maxico and slap made in Mexico label on it.
Heck u can even import kits of the outer hull from 3rd party and than buy it from that party labelling it made in mexico. And assembling it in your plant.
there are too many ways to bypass santions.
But this is my last post. Your right have a good day.

You clearly don’t understand the meaning of the words Substantial transformation one of three criteria used to assess the country of origin by CBP.

• Substantial Transformation
• Rules of Origin by tariff shift I.e. Change in HS code e.g wood to furniture
• Value content rule.

So the import of parts from China and building of chassis/ outer hull in Mexico and then stick a ‘Made in Mexico’ label scenario is covered by value content rule because the engine, brakes and gear box will have a higher value than the chassis/ body work.

This isn’t our first rodeo, the Japanese already tried unsuccessfully to sneak in through the Mexico back door decades ago. Sure, businesses can lie, falsify records and succeed in evading tariffs but when they do get caught and they always do they face heavy fines.CBP’s revenue in 2022 is a 112 Billion $’s.